May 9, 2024

Archives for October 2020

Reasons to Sign Up for a Health Savings Account

Some employers contribute seed money to H.S.A.s — about $572 on average for single coverage, according to the Kaiser Family Foundation — and cover monthly bank maintenance fees for workers. For 2021, H.S.A. contribution limits are $3,600 for an individual and $7,200 for family coverage. (People 55 and older can save an extra $1,000.)

Nor do you need to have health insurance through an employer to have an H.S.A. Many plans available through HealthCare.gov, the federal health insurance marketplace.

If you need help in choosing an H.S.A., the research firm Morningstar recently evaluated accounts from about a dozen prominent providers. Accounts from Fidelity, Lively, Health Equity and HSA Authority topped the recommendations for savers, while Fidelity, HSA Authority, Health Equity and Bank of America were recommended for investors.

Look for a plan with no maintenance fee, a low minimum balance threshold for investments and a manageable selection of investment funds, said Leo Acheson, director of multi-asset ratings at Morningstar. Interest rates on savings are so low these days that it really isn’t a factor in choosing an account, he said. But you’ll want to avoid accounts that charge extra fees, like those for mailing paper statements.

If your health plan qualifies for an H.S.A., don’t assume that one will be opened for you. Just a third of employers automatically enroll workers in an H.S.A. if they choose an eligible health plan, according to the Plan Sponsor Council of America, an industry group.

Here are some questions and answers about health savings accounts:

Can I use my H.S.A. to buy masks and other personal protective equipment?

Masks and other types of personal protective equipment aren’t eligible, and neither is hand sanitizer, said Rida Wong, president of Health-E Commerce, which oversees HSAstore.com and FSAstore.com, online sellers of eligible health items.

Health-E Commerce is participating in a campaign to put those items on the “approved” list, including support for federal legislation, introduced as House Resolution 8450. The outlook for the measure, however, is uncertain.

Article source: https://www.nytimes.com/2020/10/30/your-money/hsa-contribution.html

Stressed About the Election? Don’t Take It Out on Your Investments

What you’ve been feeling: If you were feeling deeply pessimistic about your investments in the spring, even after the market rallied, you were exhibiting signs of what the behavioral economists call “extrapolation bias.” But guess what. If you decided to become a day trader in April when the stock market rebounded, and you’re thrilled with the gains you’ve made, you are under the same effect now.

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Extrapolation bias occurs when people give added weight to current events in the belief that those events will continue. Stefano Giglio, a professor of finance at the Yale School of Management, conducted surveys of investors as the pandemic began. In February, as the coronavirus was just beginning its spread in the United States, investors expected a 6 percent return this year for the SP 500. By mid-March, investors were expecting just a 1 percent return, and that expectation stayed there through April — even though stocks had begun to rebound.

“People across the board became more pessimistic,” Professor Giglio said.

Yet new investors who had little experience in investing have found themselves performing like hedge fund stars if they started investing in the spring, Mr. Maguire, of Boston Private, said. Since late March, stocks have generally gone up, although they’ve been more choppy recently. But if those investors think their returns are the result of immense skill and not a bit of good market timing, they could suffer mightily in a market correction.

“I fully intend people to keep doing this, but it could end badly for them,” Mr. Maguire said. “It’s a change in behavior that’s explained by the anticipation of gains, which triggers a dopamine response in the brain.”

Another contributor to anxiety about investing is the availability bias, which means the more you see information repeated, the more you think that information will be true in the long term — without examining other potential outcomes.

With the pandemic, many people could not help but draw lessons from them previous pandemics, said Michael Liersch, head of advice and planning for Wells Fargo’s wealth and investment management division. But, he said, that kind of thinking doesn’t work in the long run, even if it makes us feel better in the moment.

Article source: https://www.nytimes.com/2020/10/30/your-money/election-investments.html

Governments’ Covid-19 reaction to close economies worse than pandemic itself – Jim Rogers

“This is probably the worst [crisis] that I have seen in my lifetime, because everything collapsed and you had politicians and media and everybody overreacting in my view, and everybody closed down,” he told the 12th annual ‘Russia Calling’ Investment Forum in Moscow, when asked if he sees any parallels with previous financial crises.

The business event is being held online this year for the first time due to the pandemic.

Also on rt.com ‘I don’t like saying it, but something will replace the US dollar’: Investor Jim Rogers says century of USD reign is ending

“We’ve had many epidemics in history, but never before did they close McDonalds, never before did they close all the airlines,” Rogers noted, adding that this overreaction has ruined many economies and the lives of many people.

The investor believes that the current crisis is markedly different to previous ones as never in history have governments spent, printed or borrowed so much money. While the current situation might be good for the markets, he noted that it cannot be good for the future due to skyrocketing debt.

“I caution all of you, it’s been 11 years since we’ve had a serious bear market… and I would suggest to you that maybe next time when we have a serious bear market it’s going to be the worst in my lifetime,” Rogers told the participants of the forum.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/505022-covid19-reaction-worse-than-virus/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

US headed for dollar & sovereign debt crisis on scale never experienced – Peter Schiff

According to Schiff, the United States is entering the final chapter of the book the former Fed Chair Alan Greenspan started to write, unleashing the loose money policy that blew up the dot-com bubble.

“When that bubble popped, instead of admitting his mistakes, Greenspan ignored them and tried to revive the economy by inflating a bigger bubble in the real estate market than the bubble that had just popped in the stock market. And the Fed succeeded in inflating that bubble. But that was not a success. It was a failure.”

People were using the inflated value of their homes as ATMs, and that drove consumer spending. They were living beyond their means and nobody was saving, Schiff said. “So, the whole economy was distorted by the malinvestments and bad decisions that were being made as a result of artificially low interest rates.”

Also on rt.com China in post-Covid race for global economic dominance – Max Keiser

When the Fed tried to normalize, the bubble popped, the mortgage market blew up, and that resulted in the Great Recession. “Everything the Fed said about their ability to normalize rates and shrink the balance sheet was wrong. I said they were wrong as they were saying it. They never were able to normalize interest rates. They never came close to returning the balance sheet to pre-crisis levels,” said Schiff.

He noted that today the central bank is running QE infinity – that is, open-ended quantitative easing – and stating that rates will stay at zero for years. “We are now the banana republic that Ben Bernanke assured us we would never become,” Schiff opined.

According to the stockbroker, “The Federal Reserve has never been right. Everything they have said about the efficacy of their policies, what their policies would create, and their ability to reverse them or unwind them, has been wrong. And it’s amazing how consistently wrong they have been.”

Also on rt.com The end of American power: Don’t blame Trump, and don’t expect Biden to save it either

Schiff concluded: “We are headed for a US dollar crisis and a sovereign debt crisis. The magnitude of this crisis will be unlike anything we’ve ever experienced. Because this is not just mortgages blowing up. This is the credit of the United States government. This is the risk-free asset becoming the most toxic asset on the planet.

“And it’s not just US Treasuries that are going to collapse, but it’s the entire US-denominated bond market which is built on top the foundation of US Treasuries. So, Treasuries go – it all goes – corporate bonds, muni bonds, mortgages. Any debt instrument that is denominated in US dollars is going to collapse.”

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/504992-us-dollar-debt-crisis/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Chinese yuan beats Asian peers with biggest weekly gains

Chinese currency trading on the mainland jumped by around half a percent to 6.6789 per US dollar on Friday morning, Bloomberg data shows. The onshore yuan, officially known as the renminbi or RMB, was still up 0.3 percent against the greenback as of 7am GMT, while the offshore renminbi was up around 0.2 percent. 

Also on rt.com US dollar on path to ‘significant depreciation’ over next few years, Standard Chartered warns

The appreciation of the Chinese currency comes as the world’s second-largest economy continues to rebound from the coronavirus crisis, while other major economies are still struggling to get back on track amid rising numbers of infections.

The Chinese economy expanded 4.9 percent in the third quarter, and the country’s exports and imports rose sharply in September. The yuan is set to finish October with around a 1.5-percent gain. It has strengthened significantly so far this year, rising around four percent against the dollar.

Some analysts say they see room for the Chinese currency to march still higher. According to UBS Global Wealth Management’s Dominic Schnider, “the stars are really lining up” for a stronger yuan. 

Also on rt.com Chinese billionaires boost their fortunes at record pace despite coronavirus crisis

“A growing current account surplus, due to stronger exports and a smaller service-balance deficit, tends to favor a stronger currency in the quarters ahead,” he told CNBC earlier this week, adding that strong economic data and the yuan “yield carry” can facilitate further growth. The yield carry refers to a strategy whereby investors make a profit on the difference between interest paid and interest earned.

The Chinese yuan may become the world’s third-largest reserve currency within 10 years, analysts at Morgan Stanley have predicted.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/504988-yuan-rises-against-dollar/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

A decade late, billions over budget & at the worst possible time: Berlin’s new airport finally opens

Also named Willy Brandt Airport, after the late West Berlin mayor and West German chancellor, Brandenburg (BER) is located adjacent to Schönefeld, roughly 18 kilometers (about 11 miles) southeast of the Brandenburg Gate. It’ll consist of a pair of runways and three terminals. The existing facilities at Schönefeld Airport will continue to operate, while Berlin Tegel will close for good on November 7.

RT

However, Berlin will not celebrate the opening of its new airport because it is embarrassed about how long it took to build, said the head of the German capital’s airports Engelbert Luetke-Daldrup last month.

“There is no big party. We are just going to open,” Luetke-Daldrup said, adding: “German engineers like me have felt embarrassed,” while the delays had made Berlin, and the whole of Germany, a “laughing stock.”

Also on rt.com Russia builds dozens of airports while Berlin’s Brandenburg still unfinished after 13 years (PHOTOS)

The problems began shortly after the planning committee selected the site in 1996. First came a dispute over whether the airport would be privately or publicly owned, then came lawsuits from local residents unhappy to see an airport as a neighbor. That all delayed the start of construction by six years. Once work really began in 2006, a tentative opening date of 2011 was set.

The next few years brought embarrassing design flaws, which included doors that weren’t numbered correctly, a terminal roof twice as heavy as it should’ve been, cables that were incorrectly installed and even escalators that were too short. In addition, the construction planning company went bankrupt. 

In 2010 the opening was postponed until 2012, and after a second failed opening, another range of technical issues was revealed. Fire-doors didn’t open, miles of cables were mislaid, and a vast smoke-extraction system was ineffective.

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In total, the troubled airport missed six official opening dates in succession. The costs had spiraled to six billion euro ($7 billion) from an original €2.7 billion (over $3 billion), with the construction process also disrupted by accusations of corruption.

Now Brandenburg Airport will be opening its doors in the middle of the worst crisis the aviation industry has ever seen, as most airplanes are grounded and major airlines face the prospect of bankruptcy due to the coronavirus pandemic.

Four months ago, Germany’s flag carrier and Europe’s second largest airline Lufthansa, received a €9 billion ($10.5 billion) state bailout as the pandemic-caused crisis became the “biggest challenge” in the company’s 65-year history.

Also on rt.com Germany’s struggling carrier Lufthansa agrees to $10 billion state rescue package

According to Luetke-Daldrup, Berlin’s airports will need government support of around €260 million ($305 million), with only around ten million passengers expected in 2020, down from 36 million last year. He said it may “take years” for the industry to reach pre-coronavirus levels of business as “the economic situation is dramatic.”

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/504766-berlin-long-delayed-airport/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Glenn Greenwald Leaving The Intercept

Betsy Reed, the editor in chief of The Intercept, disputed Mr. Greenwald’s claim that he had been censored.

“Glenn Greenwald’s decision to resign from The Intercept stems from a fundamental disagreement over the role of editors in the production of journalism and the nature of censorship,” she wrote in a statement.

Ms. Reed added that his post on his departure was “teeming with distortions and inaccuracies — all of them designed to make him appear a victim, rather than a grown person throwing a tantrum.”

The statement included some qualified praise: “We have the greatest respect for the journalist Glenn Greenwald used to be, and we remain proud of much of the work we did with him over the past six years,” the editor wrote. “It is Glenn who has strayed from his original journalistic roots, not The Intercept.”

In a phone interview, Mr. Greenwald said he had received emails from Intercept editors outlining what the publication would allow and not allow in his article. “My arrangement with The Intercept since it began is my opinion pieces are not edited by anyone,” he said.

The Intercept was founded in 2013 by Mr. Greenwald, Ms. Poitras and Jeremy Scahill, with backing from the eBay billionaire Pierre Omidyar. In the post announcing his departure from the site, Mr. Greenwald wrote that he was considering starting his own media outlet. In the interview, he said he had talked with “journalists who kind of are politically homeless, who are neither fully entrenched in the liberal left media or the Democratic Party, nor the pro-Trump right.”

For now, Mr. Greenwald will be part of a growing number of journalists who have left major media outlets to try their luck at Substack. The group includes Andrew Sullivan, formerly of New York magazine, and Matt Taibbi, formerly of Rolling Stone.

Article source: https://www.nytimes.com/2020/10/29/business/media/glenn-greenwald-leaving-intercept.html

Bob Biggs, Los Angeles Punk-Rock Entrepreneur, Dies at 74

Mr. Biggs graduated from La Serna High School and attended U.C.L.A. on a football scholarship with hopes of going pro. But he blew out his knee during his first season, and the injury ended his athletic career. He reinvented himself, majoring in fine arts and immersing himself in the city’s theater scene, and he showed his drawings and paintings at some local galleries. Before long, he was living next door to Slash’s offices.

In addition to his wife, he is survived by a son, Montezuma Ariel Alexander Biggs, and a sister, Judy Biggs. His marriages to Leslie Ward, Ms. Spheeris and Stella Marmara ended in divorce.

Slash released its biggest commercial hit, Faith No More’s album “The Real Thing,” in 1989, and it also released music by Rammstein, the Chills and L7. The label was sold to London Records in 1996, but Mr. Biggs stayed on. After a series of corporate mergers, Slash closed as an active label in 2000, but Mr. Biggs reacquired the rights to the name a few years later and Slash eventually relaunched as a reissue label.

Mr. Biggs lived in New York during the London Records era, but he later moved back to Southern California with his family, settling in a mountainous desert area of Tehachapi, where he built a ranch with an art studio to work on his large-scale oil paintings. A collection of his pastel paintings featuring a series of babies’ heads was used as the art for “To Be Kind,” a 2014 album by the experimental rock band Swans. In 2016, Mr. Biggs learned that he had Lewy body dementia, a neurological disease that affects movement and cognition.

This year marked the 40th anniversary of X’s “Los Angeles,” and as Mr. Doe reflected on Slash Records during his phone interview, he disagreed with the snobbish notion that Mr. Biggs had no punk spirit.

“In the best definition of punk rock, Bob was actually very punk,” he said. “He wanted to change things, and he didn’t accept the status quo. When someone told him, ‘You can’t do that,’ he said, ‘Oh really? I’m going to try.’”

Article source: https://www.nytimes.com/2020/10/29/arts/music/bob-biggs-dead.html

‘There Are Tons of Brown Faces Missing’: Publishers Step Up Diversity Efforts

Ms. Marqués faced criticism last month after a racist and anti-Semitic column appeared in an advertising insert in El Nuevo Herald. In an apology to readers, Ms. Marqués said that no one in the paper’s leadership saw the supplement before publication. Ms. Marqués left her role as publisher soon after, but Kristin Roberts, senior vice president for news at McClatchy, the Herald’s parent company, said that move was an organizational decision unrelated to the advertising supplement. Ms. Marqués stayed on as executive editor.

Ms. Marqués has also been a member of the Pulitzer board since 2012, where judges weigh in not only on journalism but on poetry, music, drama and fiction. To plow through all the required reading, she would toggle back and forth between paper copies at home and audiobooks on her commute. Her children got used to hearing a lot of “not now, I’m reading,” she said.

“When you’re deliberating about the best work and you’re trying to decide between the finalists, you really need to start thinking in ways that are so granular about what separates one entry from another,” she said. “What separates great from excellent, or good from great.”

In recent months, several other people of color have been named to top executive roles at major publishing companies, high-profile hires that could have a lasting impact on the literary landscape.

Last month, Crown brought on Madhulika Sikka, executive producer of audio at the Washington Post, as a vice president and executive editor. In July, Penguin Random House hired Lisa Lucas, the executive director of the National Book Foundation, to become the publisher of Pantheon and Schocken Books. This fall, Jamia Wilson was named executive editor of the Random House imprint, and Francis Lam became editor in chief of the lifestyle publisher Clarkson Potter.

Ms. Marqués said it makes good business sense that American publishers are seeking to better reflect the population in their books, authors and publishing employees.

“I wanted to see myself in these books,” she said of herself as a reader. “I wanted to be able to relate to the characters, somebody who could understand what I was feeling and going through. That’s what our readers want.”

Article source: https://www.nytimes.com/2020/10/29/books/publishing-diversity-new-hires.html

The American Economy Was Hit by a Bus. It’s Healing, but Slowly.

(Those numbers, and those that follow, are seasonally adjusted comparisons of the newly released third-quarter numbers with the fourth quarter of 2019.)

That said, the loss of services spending remains greater than the gain in goods spending, and total consumption spending remains 3.3 percent below pre-pandemic levels — implying a continuing shortage of demand in the economy. And spending levels have been propped up by stimulus checks and expanded unemployment insurance benefits, both of which have gone away amid a stalemate in Washington over additional relief. This could mean families’ ability to keep up spending will come under pressure through the winter.

Another major area of loss offers some alarm. American exports of services are 25 percent below pre-pandemic levels, representing a $193 billion annualized loss of economic activity. In the math of G.D.P., spending by overseas tourists and tuition paid by international students count as services exports, so it is no surprise these numbers are down.

But it is plausible that domestic spending will snap back faster than international spending once public health concerns start to ebb. You could imagine that Americans will return to their neighborhood restaurant more quickly than Chinese tourists will begin filling up New York City hotels again.

Other lines in the G.D.P. tables show a mix of worrying and reassuring signs. For example, the housing sector has been a welcome source of economic strength, with residential investment up 5.1 percent (that new deck your neighbor is building is contributing to those numbers).

But business investment is not so strong, suggesting that the corporate sector is acting with caution in ways that could have lasting consequences.

Some of that we can chalk up to the direct effects of the pandemic. Investment in transportation equipment is down 21.9 percent, and on entertainment products down 12.2 percent. Presumably those numbers will rebound when people start flying again and when film sets can more easily operate without risking the health of all involved.

Article source: https://www.nytimes.com/2020/10/29/upshot/american-economy-gdp-numbers.html